Latest news with #JohnsonControls'
Yahoo
07-05-2025
- Business
- Yahoo
Johnson Controls Reports Strong Q2 Results; Raises FY25 Guidance
Sales in the quarter of $2.9 billion increased 6% over the prior year. Organic sales increased 7% over the prior year, led by continued strength across Applied HVAC and Controls. A slide presentation to accompany the results can be found in the Investor Relations section of Johnson Controls' website at . The financial highlights presented in the tables below exclude discontinued operations and are in accordance with GAAP, unless otherwise indicated. All comparisons are to the second quarter of fiscal 2024. "The Johnson Controls team delivered strong second quarter results, highlighted by organic sales growth, margin expansion and record backlog," said Joakim Weidemanis, CEO. "The results reflect the strengthened execution from our team as well as broad-based and sustained demand for our differentiated solutions. We have a strong foundation in place and by starting to increase customer focus and implement lean and business system approaches, we can take the first step to accelerate our momentum and enhance value for all of our stakeholders." Sales in the quarter of $5.7 billion increased 1% over the prior year on an as reported basis and 7% organically. GAAP income from continuing operations was $473 million. Adjusted income from continuing operations was $545 million. CORK, Ireland, May 7, 2025 /PRNewswire/ -- Johnson Controls International plc (NYSE: JCI), a global leader for smart, safe, healthy and sustainable buildings, today reported fiscal second quarter 2025 GAAP earnings per share ("EPS") of $0.71. Adjusted EPS was $0.82. * This news release contains non-GAAP financial measures. Definitions and reconciliations of the non-GAAP financial measures can be found in the attached footnotes. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. Story Continues Excluding M&A and adjusted for foreign currency, orders increased 4% year-over-year and backlog of $9.8 billion increased 11% year-over-year. Segment EBITA margin of 13.4% declined 20 basis points versus the prior year as Systems growth outpaced Service growth. Building Solutions EMEA/LA (Europe, Middle East, Africa/Latin America) Fiscal Q2 (in millions) 2025 2024 Change Sales $ 1,085 $ 1,064 2 % Segment EBITA GAAP 136 89 53 % Adjusted (non-GAAP) 136 89 53 % Segment EBITA Margin % GAAP 12.5 % 8.4 % 410 bp Adjusted (non-GAAP) 12.5 % 8.4 % 410 bp Sales in the quarter of $1.1 billion increased 2% over the prior year. Organic sales grew 5% versus the prior year quarter led by 9% growth in Service, including solid growth in Applied HVAC and Fire and Security sales. Excluding M&A and adjusted for foreign currency, orders increased 10% year-over-year and backlog of $2.7 billion increased 10% year-over-year. Segment EBITA margin of 12.5% expanded 410 basis points versus the prior year driven by productivity improvements and positive mix from growth in Service. Building Solutions Asia Pacific Fiscal Q2 (in millions) 2025 2024 Change Sales $ 542 $ 491 10 % Segment EBITA GAAP 79 54 46 % Adjusted (non-GAAP) 79 54 46 % Segment EBITA Margin % GAAP 14.6 % 11.0 % 360 bp Adjusted (non-GAAP) 14.6 % 11.0 % 360 bp Sales in the quarter of $542 million increased 10% versus the prior year. Organic sales increased 13% versus the prior year led by strong double-digit growth from both Service and Systems. Excluding M&A and adjusted for foreign currency, orders were flat year-over-year and backlog of $1.5 billion increased 21% year-over-year. Segment EBITA margin of 14.6% increased 360 basis points versus the prior year driven by productivity improvements. Global Products Fiscal Q2 (in millions) 2025 2024 Change Sales $ 1,133 $ 1,303 (13 %) Segment EBITA GAAP 341 290 18 % Adjusted (non-GAAP) 343 316 9 % Segment EBITA Margin % GAAP 30.1 % 22.3 % 780 bp Adjusted (non-GAAP) 30.3 % 24.3 % 600 bp Sales in the quarter of $1.1 billion declined 13% versus the prior year. Organic sales grew 8% versus the prior year, led by positive price and volume growth. Excluding the impact of divestitures, Applied HVAC grew over 20% with strong double-digit growth in North America and EMEA/LA. Segment EBITA margin of 30.1% expanded 780 basis points versus the prior year due to enhanced operational efficiencies and increased volumes, excluding the impact of divestitures. Adjusted segment EBITA in Q2 2025 excludes transformation costs. Adjusted segment EBITA in Q2 2024 excludes costs for a product quality issue, partially offset by favorable earn-out adjustments. Corporate Fiscal Q2 (in millions) 2025 2024 Change Corporate Expense GAAP $ 186 $ 92 102 % Adjusted (non-GAAP) 135 83 63 % Corporate expenses increased over the prior year as a result of certain corporate accruals combined with the impact of stranded costs from the planned divestiture of the R&LC HVAC business. Adjusted Corporate expense in Q2 2025 excludes certain transaction/separation costs and transformation costs. Adjusted Corporate expense in Q2 2024 excludes certain transaction/separation costs and cyber incident costs. OTHER Q2 ITEMS Cash provided by operating activities was $550 million. Free cash flow was $456 million and adjusted free cash flow was $463 million. The Company paid dividends of $245 million. The Company repurchased 4.1 million shares of common stock for $330 million. GUIDANCE The following forward-looking statements regarding organic sales growth, adjusted segment EBITA margin, adjusted segment EBITA margin improvement, adjusted EPS and adjusted free cash flow conversion are non-GAAP financial measures and are presented on a continuing operations basis excluding the Residential and Light Commercial HVAC business, which was classified as discontinued operations beginning in the fiscal fourth quarter of 2024. These non-GAAP financial measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as mark-to-market adjustments. Organic revenue growth excludes the effect of acquisitions, divestitures and foreign currency. The Company is unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to its most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on the Company's fiscal 2025 third quarter and full year GAAP financial results from continuing operations. The Company initiated fiscal 2025 third quarter guidance: Organic sales growth of mid-single digits Adjusted segment EBITA margin of ~17.5% Adjusted EPS before special items of ~$0.97 to $1.00 The Company raised fiscal 2025 full year guidance: Organic sales growth of mid-single digits (unchanged) Adjusted segment EBITA margin improvement of ~90 basis points year-over-year (previously more than 80 bps) Adjusted EPS before special items of ~$3.60 (previously ~$3.50 to $3.60) Adjusted free cash flow conversion of ~100% (previously ~90%+) CONFERENCE CALL & WEBCAST INFO Johnson Controls will host a conference call to discuss this quarter's results at 8:30 a.m. ET today, which can be accessed by dialing 844-763-8274 (in the United States) or +1-412-717-9224 (outside the United States), or via webcast. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Johnson Controls website at A replay will be made available approximately two hours following the conclusion of the conference call. ABOUT JOHNSON CONTROLS At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet. Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering. Today, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry. Visit for more information and follow @Johnson Controls on social platforms. JOHNSON CONTROLS CONTACTS: INVESTOR CONTACTS: MEDIA CONTACT: Jim Lucas Danielle Canzanella Direct: +1 414.340.1752 Direct: +1 203.499.8297 Email: Email: Michael Gates Direct: +1 414.524.5785 Email: JOHNSON CONTROLS INTERNATIONAL PLC CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding Johnson Controls' future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures, debt levels and market outlook are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond its control, that could cause its actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: Johnson Controls' ability to manage macroeconomic and geopolitical volatility, including changes to laws or policies governing foreign trade, including tariffs, economic sanctions, foreign exchange and capital controls, import/export controls or other trade restrictions as well as supply chain disruptions; the ability of Johnson Controls to manage general economic, business and capital market conditions, including the impacts of trade restrictions, recessions, economic downturns and global price inflation; Johnson Controls' ability to develop or acquire new products and technologies that achieve market acceptance and meet applicable quality and regulatory requirements; the ability of Johnson Controls to execute on its operating model and drive organizational improvement; Johnson Controls' ability to successfully execute and complete portfolio simplification, including the completion of the divestiture of the Residential and Light Commercial business, as well as the possibility that the expected benefits of such actions will not be realized or will not be realized within the expected time frame; the ability to hire and retain senior management and other key personnel, including successfully completing Johnson Controls' Chief Executive Officer transition; the ability to innovate and adapt to emerging technologies, ideas and trends in the marketplace, including the incorporation of technologies such as artificial intelligence; fluctuations in the cost and availability of public and private financing for Johnson Controls' customers; the ability to manage disruptions caused by international conflicts, including Russia and Ukraine and the ongoing conflicts in the Middle East; managing the risks and impacts of potential and actual security breaches, cyberattacks, privacy breaches or data breaches, maintaining and improving the capacity, reliability and security of Johnson Controls' enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of Johnson Controls' digital platforms and services; fluctuations in currency exchange rates; changes or uncertainty in laws, regulations, rates, policies, or interpretations that impact Johnson Controls' business operations or tax status; the ability to adapt to global climate change, climate change regulation and successfully meet Johnson Controls' public sustainability commitments; the outcome of litigation and governmental proceedings; the risk of infringement or expiration of intellectual property rights; Johnson Controls' ability to manage disruptions caused by catastrophic or geopolitical events, such as natural disasters, armed conflict, political change, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Johnson Controls' business is included in the section entitled "Risk Factors" in Johnson Controls Annual Report on Form 10-K for the fiscal year ended September 30, 2024 filed with the SEC on November 19, 2024, which is available at and under the "Investors" tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls subsequently filed Quarterly Reports on Form 10-Q. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication. FINANCIAL STATEMENTS Johnson Controls International plc Consolidated Statements of Income (in millions, except per share data; unaudited) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 Net sales Products and systems $ 3,865 $ 3,883 $ 7,550 $ 7,487 Services 1,811 1,714 3,552 3,319 5,676 5,597 11,102 10,806 Cost of sales Products and systems 2,523 2,616 4,979 5,107 Services 1,084 1,059 2,128 1,999 3,607 3,675 7,107 7,106 Gross profit 2,069 1,922 3,995 3,700 Selling, general and administrative expenses 1,427 2,064 2,826 3,398 Restructuring and impairment costs 62 239 95 274 Net financing charges 80 89 166 176 Equity income (loss) 1 (1) 1 (3) Income (loss) from continuing operations before income taxes 501 (471) 909 (151) Income tax provision (benefit) 26 (153) 73 (173) Income (loss) from continuing operations 475 (318) 836 22 Income from discontinued operations, net of tax 51 84 141 148 Net income (loss) 526 (234) 977 170 Income (loss) attributable to noncontrolling interests Continuing operations 2 3 — 3 Discontinued operations 46 40 80 70 Net income (loss) attributable to Johnson Controls $ 478 $ (277) $ 897 $ 97 Income (loss) attributable to Johnson Controls Continuing operations $ 473 $ (321) $ 836 $ 19 Discontinued operations 5 44 61 78 Total $ 478 $ (277) $ 897 $ 97 Basic earnings (loss) per share attributable to Johnson Controls Continuing operations $ 0.72 $ (0.47) $ 1.27 $ 0.03 Discontinued operations 0.01 0.06 0.09 0.11 Total $ 0.73 $ (0.41) $ 1.36 $ 0.14 Diluted earnings (loss) per share attributable to Johnson Controls Continuing operations $ 0.71 $ (0.47) 1.26 0.03 Discontinued operations 0.01 0.06 0.09 0.11 Total $ 0.72 $ (0.41) $ 1.35 $ 0.14 Johnson Controls International plc Condensed Consolidated Statements of Financial Position (in millions; unaudited) March 31, 2025 September 30, 2024 Assets Cash and cash equivalents $ 795 $ 606 Accounts receivable - net 5,858 6,051 Inventories 1,756 1,774 Current assets held for sale 1,856 1,595 Other current assets 1,085 1,153 Current assets 11,350 11,179 Property, plant and equipment - net 2,422 2,403 Goodwill 16,509 16,725 Other intangible assets - net 3,883 4,130 Noncurrent assets held for sale 3,101 3,210 Other noncurrent assets 5,102 5,048 Total assets $ 42,367 $ 42,695 Liabilities and Equity Short-term debt $ 1,261 $ 953 Current portion of long-term debt 558 536 Accounts payable 3,254 3,389 Accrued compensation and benefits 832 1,048 Deferred revenue 2,380 2,160 Current liabilities held for sale 1,544 1,431 Other current liabilities 1,988 2,438 Current liabilities 11,817 11,955 Long-term debt 8,167 8,004 Pension and postretirement benefit obligations 181 217 Noncurrent liabilities held for sale 429 405 Other noncurrent liabilities 4,741 4,753 Long-term liabilities 13,518 13,379 Shareholders' equity attributable to Johnson Controls 15,805 16,098 Noncontrolling interests 1,227 1,263 Total equity 17,032 17,361 Total liabilities and equity $ 42,367 $ 42,695 Consolidated Statements of Cash Flows (in millions; unaudited) Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 Operating Activities of Continuing Operations Income (loss) from continuing operations attributable to Johnson Controls $ 473 $ (321) $ 836 $ 19 Income from continuing operations attributable to noncontrolling interests 2 3 — 3 Income (loss) from continuing operations 475 (318) 836 22 Adjustments to reconcile net income to cash provided (used) by operating activities: Depreciation and amortization 202 215 395 423 Pension and postretirement income and contributions (21) (15) (37) (31) Deferred income taxes (53) (339) (107) (419) Noncash restructuring and impairment charges 25 244 33 253 Equity-based compensation 31 25 59 54 Other - net 24 (15) 32 (37) Changes in assets and liabilities: Accounts receivable (191) (549) 93 (509) Inventories (12) (29) (27) (135) Other assets (42) 5 (213) (190) Restructuring reserves (5) (46) (3) (60) Accounts payable and accrued liabilities 180 517 (227) 202 Accrued income taxes (63) (21) (35) (10) Cash provided (used) by operating activities from continuing operations 550 (326) 799 (437) Investing Activities of Continuing Operations Capital expenditures (94) (128) (210) (210) Other - net (18) (4) (7) 14 Cash used by investing activities from continuing operations (112) (132) (217) (196) Financing Activities of Continuing Operations Net proceeds from borrowings with maturities less than three months 346 427 358 1,543 Proceeds from debt — — 775 422 Repayments of debt (502) (163) (502) (163) Stock repurchases and retirements (330) (474) (660) (474) Payment of cash dividends (245) (252) (490) (504) Proceeds from the exercise of stock options 61 8 105 20 Employee equity-based compensation withholding taxes (2) (1) (31) (24) Other - net (3) (41) (29) (80) Cash provided (used) by financing activities from continuing operations (675) (496) (474) 740 Discontinued Operations Cash provided (used) by operating activities 49 123 47 (12) Cash used by investing activities (17) (5) (27) (15) Cash used by financing activities (65) (55) (65) (63) Cash provided (used) by discontinued operations (33) 63 (45) (90) Effect of exchange rate changes on cash, cash equivalents and restricted cash (169) (41) (15) 19 Change in cash, cash equivalents and restricted cash held for sale (1) (4) 3 1 Increase (decrease) in cash, cash equivalents and restricted cash (440) (936) 51 37 Cash, cash equivalents and restricted cash at beginning of period 1,258 1,890 767 917 Cash, cash equivalents and restricted cash at end of period 818 954 818 954 Less: Restricted cash 23 116 23 116 Cash and cash equivalents at end of period $ 795 $ 838 $ 795 $ 838 FOOTNOTES 1. Sale of Residential and Light Commercial HVAC Business The Company signed a definitive agreement in July 2024 to sell its Residential and Light Commercial ("R&LC") HVAC business, which includes the North America Ducted businesses and the global Residential joint venture with Hitachi Global Life Solutions, Inc. ("Hitachi"), of which Johnson Controls owns 60% and Hitachi owns 40%. The R&LC HVAC business, which was previously reported in the Global Products segment, meets the criteria to be classified as a discontinued operation and, as a result, its historical financial results are reflected in the consolidated financial statements as a discontinued operation, and assets and liabilities were reclassified as held for sale for all periods presented. Unless otherwise noted, all activities and amounts reported in the following footnotes include only continuing operations of the Company and exclude activities and amounts related to the R&LC HVAC business. 2. Non-GAAP Measures The Company reports various non-GAAP measures in this earnings release and the related earnings presentation. Non-GAAP measures should be considered in addition to, and not as replacements for, the most comparable GAAP measures. Refer to footnotes three through eight for further information on the calculations of the non-GAAP measures and reconciliations of the non-GAAP measures to the most comparable GAAP measures. Organic sales Organic sales growth excludes the impact of acquisitions, divestitures and foreign currency. Management believes organic sales growth is useful to investors in understanding period-over-period sales results and trends. Cash flow Management believes free cash flow and adjusted free cash flow measures are useful to investors in understanding the strength of the Company and its ability to generate cash. These non-GAAP measures can also be used to evaluate the Company's ability to generate cash flow from operations and the impact that this cash flow has on its liquidity. Management also believes adjusted free cash flows are useful to investors in understanding period-over-period cash flows, cash trends and ongoing cash flows of the Company. Adjusted free cash flow and adjusted free cash flow conversion are non-GAAP measures which exclude the impacts of the following: JC Capital cash flows primarily include activity associated with finance/notes receivables and inventory and/or capital expenditures related to lease arrangements. JC Capital net income is primarily related to interest income on the finance/notes receivable and profit recognized on arrangements with sales-type lease components. Effective January 1, 2024, the Company has excluded the impact of discontinuing its accounts receivables factoring programs from adjusted free cash flow and adjusted free cash flow conversion. The Company has also re-baselined the prior year adjusted free cash flow measures to present a more comparative measure without the impact of factoring. Cash payments related to the water systems AFFF settlement and cash receipts for AFFF-related insurance recoveries. Adjusted financial measures Adjusted financial measures include adjusted segment EBITA, adjusted segment EBITA margin, adjusted net income, adjusted earnings per share, adjusted EBIT, adjusted EBITDA and adjusted corporate expenses. These non-GAAP measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the excluded amounts is a matter of management judgment and depends upon the nature and variability of the underlying expense or income amounts and other factors. As detailed in the tables included in footnotes five through eight, the following items were excluded from certain financial measures: Net mark-to-market adjustments are the result of adjusting restricted asbestos investments and pension and postretirement plan assets to their current market value. These adjustments may have a favorable or unfavorable impact on results. Restructuring and impairment costs, net of NCI represents restructuring costs attributable to Johnson Controls including costs associated with exit plans or other restructuring plans that will have a more significant impact on the underlying cost structure of the organization. Impairment costs primarily relate to write-downs of goodwill, intangible assets and assets held for sale to their fair value. Water systems AFFF settlement and insurance recoveries include amounts related to a settlement with a nationwide class of public water systems concerning the use of AFFF manufactured and sold by a subsidiary of the Company, and AFFF-related insurance recoveries. Transaction/separation costs include costs associated with significant mergers and acquisitions. Transformation costs represent incremental expenses incurred in association with strategic growth initiatives and cost saving opportunities in order to realize the benefits of portfolio simplification and the Company's lifecycle solutions strategy. Earn-out adjustments relate to earn-out liabilities associated with certain significant acquisitions and may have a favorable or unfavorable impact on results. Cyber incident costs primarily represent expenses, net of insurance recoveries, associated with the response to, and remediation of, a cybersecurity incident which occurred in September 2023. Global Products product quality costs are costs related to a product quality issue within the Global Products segment that is unusual due to the magnitude of the expected cost to remediate in comparison to typical product quality issues experienced by the Company. Loss on divestiture relates to the sale of the ADTi business. EMEA/LA joint venture loss relates to certain non-recurring losses associated with the equity method accounting of a joint venture company. Discrete tax items, net includes the net impact of discrete tax items within the period, including the following types of items: changes in estimates associated with valuation allowances, changes in estimates associated with reserves for uncertain tax positions, withholding taxes recorded upon changes in indefinite re-investment assertions for businesses to be disposed of, impacts from statutory rate changes, and the recording of significant tax credits. Related tax impact includes the tax impact of the various excluded items. Management believes the exclusion of these items is useful to investors due to the unusual nature and/or magnitude of the amounts. When considered together with unadjusted amounts, adjusted financial measures are useful to investors in understanding period-over-period operating results, business trends and ongoing operations of the Company. Management may also use these metrics as guides in forecasting, budgeting and long-term planning processes and for compensation purposes. Debt ratios Management believes that net debt to adjusted EBITDA, a non-GAAP measure, is useful to understanding the Company's financial condition as the ratio provides an overview of the extent to which the Company relies on external debt financing for its funding and also is a measure of risk to its shareholders. 3. Sales The following tables detail the changes in sales from continuing operations attributable to organic growth, foreign currency, acquisitions, divestitures and other (unaudited): Three Months Ended March 31 Net sales Building Solutions (in millions) North America EMEA/LA Asia Pacific Total Global Products Total JCI plc Net sales - 2024 $ 2,739 $ 1,064 $ 491 $ 4,294 $ 1,303 $ 5,597 Base year adjustments Divestitures and other — — — — (242) (242) Foreign currency (10) (36) (11) (57) (12) (69) Adjusted base net sales 2,729 1,028 480 4,237 1,049 5,286 Acquisitions — 9 — 9 — 9 Organic growth 187 48 62 297 84 381 Net sales - 2025 $ 2,916 $ 1,085 $ 542 $ 4,543 $ 1,133 $ 5,676 Growth %: Net sales 6 % 2 % 10 % 6 % (13) % 1 % Organic growth 7 % 5 % 13 % 7 % 8 % 7 % Six Months Ended March 31 Net sales Building Solutions (in millions) North America EMEA/LA Asia Pacific Total Global Products Total JCI plc Net sales - 2024 $ 5,226 $ 2,102 $ 998 $ 8,326 $ 2,480 $ 10,806 Base year adjustments Divestitures and other — — — — (475) (475) Foreign currency (13) (61) (14) (88) (14) (102) Adjusted base net sales 5,213 2,041 984 8,238 1,991 10,229 Acquisitions — 12 — 12 — 12 Organic growth 447 105 85 637 224 861 Net sales - 2025 $ 5,660 $ 2,158 $ 1,069 $ 8,887 $ 2,215 $ 11,102 Growth %: Net sales 8 % 3 % 7 % 7 % (11) % 3 % Organic growth 9 % 5 % 9 % 8 % 11 % 8 % Three Months Ended March 31 Products and systems revenue Building Solutions (in millions) North America EMEA/LA Asia Pacific Total Global Products Total JCI plc Products and systems revenue - 2024 $ 1,700 $ 572 $ 308 $ 2,580 $ 1,303 $ 3,883 Base year adjustments Divestitures and other — — — — (242) (242) Foreign currency (5) (20) (7) (32) (12) (44) Adjusted products and systems revenue 1,695 552 301 2,548 1,049 3,597 Acquisitions — 7 — 7 — 7 Organic growth 135 6 36 177 84 261 Products and systems revenue - 2025 $ 1,830 $ 565 $ 337 $ 2,732 $ 1,133 $ 3,865 Growth %: Products and systems revenue 8 % (1) % 9 % 6 % (13) % — % Organic growth 8 % 1 % 12 % 7 % 8 % 7 % Six Months Ended March 31 Products and systems revenue Building Solutions (in millions) North America EMEA/LA Asia Pacific Total Global Products Total JCI plc Products and systems revenue - 2024 $ 3,218 $ 1,144 $ 645 $ 5,007 $ 2,480 $ 7,487 Base year adjustments Divestitures and other — — — — (475) (475) Foreign currency (5) (32) (10) (47) (14) (61) Adjusted products and systems revenue 3,213 1,112 635 4,960 1,991 6,951 Acquisitions — 9 — 9 — 9 Organic growth 311 19 36 366 224 590 Products and systems revenue - 2025 $ 3,524 $ 1,140 $ 671 $ 5,335 $ 2,215 $ 7,550 Growth %: Products and systems revenue 10 % — % 4 % 7 % (11) % 1 % Organic growth 10 % 2 % 6 % 7 % 11 % 8 % Three Months Ended March 31 Service revenue Building Solutions (in millions) North America EMEA/LA Asia Pacific Total Global Products Total JCI plc Service revenue - 2024 $ 1,039 $ 492 $ 183 $ 1,714 $ — $ 1,714 Base year adjustments Divestitures and other — — — — — — Foreign currency (5) (16) (4) (25) — (25) Adjusted base service revenue 1,034 476 179 1,689 — 1,689 Acquisitions — 2 — 2 — 2 Organic growth 52 42 26 120 — 120 Service revenue - 2025 $ 1,086 $ 520 $ 205 $ 1,811 $ — $ 1,811 Growth %: Service revenue 5 % 6 % 12 % 6 % — % 6 % Organic growth 5 % 9 % 15 % 7 % — % 7 % Six Months Ended March 31 Service revenue Building Solutions (in millions) North America EMEA/LA Asia Pacific Total Global Products Total JCI plc Service revenue - 2024 $ 2,008 $ 958 $ 353 $ 3,319 $ — $ 3,319 Base year adjustments Divestitures and other — — — — — — Foreign currency (8) (29) (4) (41) — (41) Adjusted base service revenue 2,000 929 349 3,278 — 3,278 Acquisitions — 3 — 3 — 3 Organic growth 136 86 49 271 — 271 Service revenue - 2025 $ 2,136 $ 1,018 $ 398 $ 3,552 $ — $ 3,552 Growth %: Service revenue 6 % 6 % 13 % 7 % — % 7 % Organic growth 7 % 9 % 14 % 8 % — % 8 % 4. Cash Flow, Free Cash Flow and Free Cash Flow Conversion The following table includes operating cash flow conversion, free cash flow and free cash flow conversion (unaudited): Three Months Ended March 31, Six Months Ended March 31, (in millions) 2025 2024 2025 2024 Cash provided (used) by operating activities from continuing operations $ 550 $ (326) $ 799 $ (437) Income (loss) from continuing operations attributable to Johnson Controls 473 (321) 836 19 Operating cash flow conversion 116 % * 96 % * Cash provided (used) by operating activities from continuing operations 550 (326) 799 (437) Capital expenditures (94) (128) (210) (210) Free cash flow (non-GAAP) $ 456 $ (454) $ 589 $ (647) Income (loss) from continuing operations attributable to Johnson Controls 473 (321) 836 19 Free cash flow conversion from net income (non-GAAP) 96 % * 70 % * * Measure not meaningful The following table includes adjusted free cash flow and adjusted free cash flow conversion (unaudited): Three Months Ended March 31, Six Months Ended March 31, (in millions) 2025 2024 2025 2024 Free cash flow (non-GAAP) $ 456 $ (454) $ 589 $ (647) Adjustments: JC Capital cash used by operating activities 11 32 77 120 Water systems AFFF settlement cash payments and insurance recoveries (11) — 386 — Impact from discontinuation of factoring programs 7 — 14 — Adjusted free cash flow (non-GAAP) 463 (422) 1,066 (527) Prior year impact from factoring programs — 619 — 534 Re-baselined adjusted free cash flow (non-GAAP) $ 463 $ 197 $ 1,066 $ 7 Adjusted net income attributable to JCI (non-GAAP) $ 545 $ 471 $ 971 $ 786 JC Capital net income (loss) 9 (3) 4 (5) Adjusted net income attributable to JCI, excluding JC Capital (non- GAAP) $ 554 $ 468 $ 975 $ 781 Adjusted free cash flow conversion (non-GAAP) 84 % 42 % 109 % 1 % 5. EBITA, EBIT and Corporate Expense The Company evaluates the performance of its business units primarily on segment EBITA. The following table includes continuing operations (unaudited): Three Months Ended March 31, Six Months Ended March 31, Actual Adjusted (Non-GAAP) Actual Adjusted (Non-GAAP) (in millions) 2025 2024 2025 2024 2025 2024 2025 2024 Segment EBITA Building Solutions North America $ 390 $ 373 $ 390 $ 373 $ 722 $ 658 $ 722 $ 658 Building Solutions EMEA/LA 136 89 136 89 244 169 244 169 Building Solutions Asia Pacific 79 54 79 54 128 100 128 100 Global Products 341 290 343 316 667 557 669 583 EBIT (non-GAAP) Income (loss) from continuing operations: Attributable to Johnson Controls $ 473 $ (321) $ 545 $ 471 $ 836 $ 19 $ 971 $ 786 Attributable to noncontrolling interests 2 3 2 3 — 3 — 3 Income (loss) from continuing operations 475 (318) 547 474 836 22 971 789 Less: Income tax provision (benefit) (1) 26 (153) 74 64 73 (173) 132 105 Income (loss) before income taxes 501 (471) 621 538 909 (151) 1,103 894 Net financing charges 80 89 80 89 166 176 166 176 EBIT (non-GAAP) $ 581 $ (382) $ 701 $ 627 $ 1,075 $ 25 $ 1,269 $ 1,070 (1) Adjusted income tax provision (benefit) excludes the related tax impacts of pre-tax adjusting items. The following tables include the reconciliations of segment EBITA as reported to adjusted segment EBITA and adjusted segment EBITA margin (unaudited): Three Months Ended March 31, (in millions) Building Solutions North America Building Solutions EMEA/LA Building Solutions Asia Pacific Global Products 2025 2024 2025 2024 2025 2024 2025 2024 Sales $ 2,916 $ 2,739 $ 1,085 $ 1,064 $ 542 $ 491 $ 1,133 $ 1,303 Segment EBITA $ 390 $ 373 $ 136 $ 89 $ 79 $ 54 $ 341 $ 290 Adjusting items: Transformation costs — — — — — — 2 — Earn-out adjustments — — — — — — — (7) Global Products product quality costs — — — — — — — 33 Adjusted segment EBITA (non-GAAP) $ 390 $ 373 $ 136 $ 89 $ 79 $ 54 $ 343 $ 316 Adjusted segment EBITA Margin % (non-GAAP) 13.4 % 13.6 % 12.5 % 8.4 % 14.6 % 11.0 % 30.3 % 24.3 % Six Months Ended March 31, (in millions) Building Solutions North America Building Solutions EMEA/LA Building Solutions Asia Pacific Global Products 2025 2024 2025 2024 2025 2024 2025 2024 Sales $ 5,660 $ 5,226 $ 2,158 $ 2,102 $ 1,069 $ 998 $ 2,215 $ 2,480 Segment EBITA $ 722 $ 658 $ 244 $ 169 $ 128 $ 100 $ 667 $ 557 Adjusting items: Transformation costs — — — — — — 2 — Earn-out adjustments — — — — — — — (7) Global Products product quality costs — — — — — — — 33 Adjusted segment EBITA (non-GAAP) $ 722 $ 658 $ 244 $ 169 $ 128 $ 100 $ 669 $ 583 Adjusted segment EBITA Margin % (non-GAAP) 12.8 % 12.6 % 11.3 % 8.0 % 12.0 % 10.0 % 30.2 % 23.5 % The following table reconciles Corporate expense from continuing operations as reported to the comparable adjusted amounts (unaudited): Three Months Ended March 31, Six Months Ended March 31, (in millions) 2025 2024 2025 2024 Corporate expense (GAAP) $ 186 $ 92 $ 357 $ 231 . Adjusting items: Transaction/separation costs (7) (5) (18) (5) Transformation costs (44) — (77) — Cyber incident costs — (4) (27) Adjusted corporate expense (non-GAAP) $ 135 $ 83 $ 262 $ 199 6. Net Income and Diluted Earnings Per Share The following tables reconcile income from continuing operations attributable to JCI and diluted earnings per share from continuing operations as reported to the comparable adjusted amounts (unaudited): Three Months Ended March 31, Income from continuing operations attributable to JCI Diluted earnings per share (in millions, except per share) 2025 2024 2025 2024 As reported (GAAP) $ 473 $ (321) $ 0.71 $ (0.47) Adjusting items: Net mark-to-market adjustments 13 (15) 0.02 (0.02) Earn-out adjustments — (7) — (0.01) Restructuring and impairment costs, net of NCI 62 239 0.09 0.35 Water systems AFFF settlement — 750 — 1.10 Water systems AFFF insurance recoveries (8) — (0.01) — Global Products product quality costs — 33 — 0.05 Transaction/separation costs 7 5 0.01 0.01 Transformation costs 46 — 0.07 — Cyber incident costs — 4 — 0.01 Discrete tax items (36) — (0.05) — Related tax impact (12) (217) (0.02) (0.32) Adjusted (non-GAAP)* $ 545 $ 471 $ 0.82 $ 0.69 * May not sum due to rounding Six Months Ended March 31, Income from continuing operations attributable to JCI Diluted earnings per share (in millions, except per share) 2025 2024 2025 2024 As reported (GAAP) $ 836 $ 19 $ 1.26 $ 0.03 Adjusting items: Net mark-to-market adjustments 14 (37) 0.02 (0.05) Earn-out adjustments — (7) — (0.01) Restructuring and impairment costs, net of NCI 95 274 0.14 0.40 Water systems AFFF settlement — 750 — 1.10 Water systems AFFF insurance recoveries (12) — (0.02) — Global Products product quality issue — 33 — 0.05 Transaction/separation costs 18 5 0.03 0.01 Transformation costs 79 — 0.12 — Cyber incident costs — 27 — 0.04 Discrete tax items (36) (57) (0.05) (0.08) Related tax impact (23) (221) (0.03) (0.32) Adjusted (non-GAAP)* $ 971 $ 786 $ 1.46 $ 1.15 * May not sum due to rounding The following table reconciles the denominators used to calculate basic and diluted earnings per share (in millions; unaudited): Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 Weighted average shares outstanding Basic weighted average shares outstanding 659.1 679 $ 660.6 $ 679.9 Effect of dilutive securities: Stock options, unvested restricted stock and unvested performance share awards 1.9 — 2.4 1.6 Diluted weighted average shares outstanding 661.0 679.0 663.0 681.5 For the three months ended March 31, 2024, the total number of potential dilutive shares due to stock options, unvested restricted stock and unvested performance share awards was 1.6 million. However, these items were not included in the computation of diluted loss per share for the three months ended March 31, 2024 since to do so would decrease the loss per share. 7. Debt Ratios The following table includes continuing operations and details net debt to income before income taxes and net debt to adjusted EBITDA (unaudited): (in millions) March 31, 2025 December 31, 2024 March 31, 2024 Short-term debt $ 1,261 $ 882 $ 2,210 Current portion of long-term debt 558 522 1,165 Long-term debt 8,167 8,589 7,348 Total debt 9,986 9,993 10,723 Less: cash and cash equivalents 795 1,237 838 Net debt $ 9,191 $ 8,756 $ 9,885 Last twelve months income before income taxes $ 2,582 $ 1,610 $ 811 Net debt to income before income taxes 3.6x 5.4x 12.2x Last twelve months adjusted EBITDA (non-GAAP) $ 3,779 $ 3,733 $ 3,423 Net debt to adjusted EBITDA (non-GAAP) 2.4x 2.3x 2.9x The following table reconciles income from continuing operations to adjusted EBIT and adjusted EBITDA (unaudited): Twelve Months Ended (in millions) March 31, 2025 December 31, 2024 March 31, 2024 Income from continuing operations $ 2,225 $ 1,432 $ 1,457 Income tax provision (benefit) 357 178 (646) Income before income taxes 2,582 1,610 811 Net financing charges 332 341 306 EBIT 2,914 1,951 1,117 Adjusting items: Net mark-to-market adjustments 4 (24) 57 Restructuring and impairment costs 330 507 565 Water systems AFFF settlement — 750 750 Water systems AFFF insurance recoveries (379) (371) — Earn-out adjustments (61) (68) (7) Transaction/separation costs 45 43 68 Transformation costs 79 33 — Cyber incident costs — 4 27 Global Products product quality costs — 33 33 Loss on divestiture 42 42 — EMEA/LA joint venture loss 17 17 — Adjusted EBIT (non-GAAP) 2,991 2,917 2,610 Depreciation and amortization 788 816 813 Adjusted EBITDA (non-GAAP) $ 3,779 $ 3,733 $ 3,423 8. Income Taxes The Company's effective tax rate before consideration of certain excluded items was approximately 12.0% for the three and six months ending March 31, 2025 and 11.9% and 11.7% for the three and six months ending March 31, 2024, respectively. Johnson Controls Logo. (PRNewsFoto/JOHNSON CONTROLS, INC.) (PRNewsFoto/) Cision View original content to download multimedia: SOURCE Johnson Controls International plc


Mid East Info
14-04-2025
- Business
- Mid East Info
JOHNSON CONTROLS LAUNCHES EMIRATIZATION ENGINEERING PROGRAM TO DEVELOP FUTURE EMIRATI ENGINEERING LEADERS - Middle East Business News and Information
Johnson Controls ( NYSE: JCI), the global leader for smart, healthy and sustainable buildings, today unveiled its Emirati Engineering Program, a first-of-its-kind training initiative in the UAE designed to empower the next generation of Emirati engineers and technical sales professionals. Launching this summer, the program marks a significant investment in the development of Emirati talent, supporting the UAE's Emiratization strategy and reinforcing Johnson Controls' commitment to fostering a skilled workforce for the future of sustainable infrastructure. A Vision for the Future of Emirati Talent: The two-year program offers young Emiratis the opportunity to gain hands-on experience and specialized skills across key technical domains including Installation & Service Operations and Technical Sales . By providing structured rotational programs in these areas, Johnson Controls is equipping participants with the tools, mentorship, and exposure needed to excel in engineering and smart infrastructure sectors. 'We are proud to launch this unique initiative to develop the next generation of Emirati engineering experts,' said Devrim Tekeli, vice president & general manager, MEA, Johnson Controls. 'The UAE is a leader in smart buildings and sustainable infrastructure, and engineering talent is essential in driving this transformation. This program will allow participants access to world-class training and career pathways to make a lasting impact in the industry.' A Structured Pathway to Engineering and Leadership Excellence: The Emirati Engineering Program offers six structured rotations across the following key areas: Installation & Service Operations – Engineering design interpretation, equipment installation, troubleshooting, and preventive maintenance. Technical Sales & Customer Engagement – Product knowledge, market analysis, customer relationship management, and sales strategy. Graduates of the program will be skilled to assume leadership roles in engineering, project management or technical sales, supporting Johnson Controls' mission to deliver smart, efficient, and sustainable solutions for the future. Building Emirati Talent for a Sustainable Future: 'Our Emirati Engineering Program is more than just a career development initiative, it's a testament to our long-term commitment to the UAE's Emiratization Vision,' said Lama Gebara, senior HR director, MEA, Johnson Controls. 'As customers increasingly seek holistic building partners with end-to-end expertise, fostering technical talent in our sector has never been more crucial. Students will have the opportunity to learn from a global leader at the forefront of solving the world's biggest energy efficiency and sustainability challenges and become part of our 30,000 strong family of service technicians around the world.' Applications Now Open: Applications for the Emirati Engineering Program are now open. Interested candidates can learn more and apply at Emiratization Campaign | Johnson Controls Johnson Controls proudly celebrates its 140th anniversary in 2025, marking a legacy of innovation and leadership in smart, safe, healthy and sustainable solutions. The company continues to redefine building performance, driving the next era for commercial buildings, transforming industries and powering its customers' missions. About Johnson Controls: At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet. Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering. Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.


Web Release
14-04-2025
- Business
- Web Release
JOHNSON CONTROLS LAUNCHES EMIRATIZATION ENGINEERING PROGRAM TO DEVELOP FUTURE EMIRATI ENGINEERING LEADERS
News Business and Economics By Editor_wr On Apr 14, 2025 Johnson Controls (NYSE: JCI), the global leader for smart, , healthy and sustainable buildings, today unveiled its Emirati Engineering Program, a first-of-its-kind training initiative in the UAE designed to empower the next generation of Emirati engineers and technical sales professionals. Launching this summer, the program marks a significant investment in the development of Emirati talent, supporting the UAE's Emiratization strategy and reinforcing Johnson Controls' commitment to fostering a skilled workforce for the future of sustainable infrastructure. A Vision for the Future of Emirati Talent The two-year program offers young Emiratis the opportunity to gain hands-on experience and specialized skills across key technical domains including Installation & Service Operations and Technical Sales . By providing structured rotational programs in these areas, Johnson Controls is equipping participants with the tools, mentorship, and exposure needed to excel in engineering and smart infrastructure sectors. 'We are proud to launch this unique initiative to develop the next generation of Emirati engineering experts,' said Devrim Tekeli, vice president & general manager, MEA, Johnson Controls. 'The UAE is a leader in smart buildings and sustainable infrastructure, and engineering talent is essential in driving this transformation. This program will allow participants access to world-class training and career pathways to make a lasting impact in the industry.' A Structured Pathway to Engineering and Leadership Excellence The Emirati Engineering Program offers six structured rotations across the following key areas: Installation & Service Operations – Engineering design interpretation, equipment installation, troubleshooting, and preventive maintenance. – Engineering design interpretation, equipment installation, troubleshooting, and preventive maintenance. Technical Sales & Customer Engagement – Product knowledge, market analysis, customer relationship management, and sales strategy. Graduates of the program will be skilled to assume leadership roles in engineering, project management or technical sales, supporting Johnson Controls' mission to deliver smart, efficient, and sustainable solutions for the future. Building Emirati Talent for a Sustainable Future 'Our Emirati Engineering Program is more than just a career development initiative, it's a testament to our long-term commitment to the UAE's Emiratization Vision,' said Lama Gebara, senior HR director, MEA, Johnson Controls. 'As customers increasingly seek holistic building partners with end-to-end expertise, fostering technical talent in our sector has never been more crucial. Students will have the opportunity to learn from a global leader at the forefront of solving the world's biggest energy efficiency and sustainability challenges and become part of our 30,000 strong family of service technicians around the world.'. Applications Now Open: Applications for the Emirati Engineering Program are now open. Interested candidates can learn more and apply at Emiratization Campaign | Johnson Controls Johnson Controls proudly celebrates its 140th anniversary in 2025, marking a legacy of innovation and leadership in smart, safe, healthy and sustainable solutions. The company continues to redefine building performance, driving the next era for commercial buildings, transforming industries and powering its customers' missions. Next Post Easter at Ristorante Loren Comments are closed.


Zawya
14-04-2025
- Business
- Zawya
Johnson Controls launches Emiratization Engineering Program
DUBAI, UAE – Johnson Controls (NYSE: JCI), the global leader for smart, , healthy and sustainable buildings, today unveiled its Emirati Engineering Program, a first-of-its-kind training initiative in the UAE designed to empower the next generation of Emirati engineers and technical sales professionals. Launching this summer, the program marks a significant investment in the development of Emirati talent, supporting the UAE's Emiratization strategy and reinforcing Johnson Controls' commitment to fostering a skilled workforce for the future of sustainable infrastructure. A Vision for the Future of Emirati Talent The two-year program offers young Emiratis the opportunity to gain hands-on experience and specialized skills across key technical domains including Installation & Service Operations and Technical Sales. By providing structured rotational programs in these areas, Johnson Controls is equipping participants with the tools, mentorship, and exposure needed to excel in engineering and smart infrastructure sectors. 'We are proud to launch this unique initiative to develop the next generation of Emirati engineering experts,' said Devrim Tekeli, vice president & general manager, MEA, Johnson Controls. 'The UAE is a leader in smart buildings and sustainable infrastructure, and engineering talent is essential in driving this transformation. This program will allow participants access to world-class training and career pathways to make a lasting impact in the industry.' A Structured Pathway to Engineering and Leadership Excellence The Emirati Engineering Program offers six structured rotations across the following key areas: Installation & Service Operations – Engineering design interpretation, equipment installation, troubleshooting, and preventive maintenance. Technical Sales & Customer Engagement – Product knowledge, market analysis, customer relationship management, and sales strategy. Graduates of the program will be skilled to assume leadership roles in engineering, project management or technical sales, supporting Johnson Controls' mission to deliver smart, efficient, and sustainable solutions for the future. Building Emirati Talent for a Sustainable Future 'Our Emirati Engineering Program is more than just a career development initiative, it's a testament to our long-term commitment to the UAE's Emiratization Vision,' said Lama Gebara, senior HR director, MEA, Johnson Controls. 'As customers increasingly seek holistic building partners with end-to-end expertise, fostering technical talent in our sector has never been more crucial. Students will have the opportunity to learn from a global leader at the forefront of solving the world's biggest energy efficiency and sustainability challenges and become part of our 30,000 strong family of service technicians around the world.' Applications Now Open: Applications for the Emirati Engineering Program are now open. Interested candidates can learn more and apply at Emiratization Campaign | Johnson Controls Johnson Controls proudly celebrates its 140th anniversary in 2025, marking a legacy of innovation and leadership in smart, safe, healthy and sustainable solutions. The company continues to redefine building performance, driving the next era for commercial buildings, transforming industries and powering its customers' missions. About Johnson Controls: At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet. Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering. Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry. Visit for more information and follow @Johnson Controls on social platforms.


Web Release
07-04-2025
- Business
- Web Release
JOHNSON CONTROLS EXPANDS YORK® YVAM CHILLER AVAILABILITY IN THE MIDDLE EAST TO MEET GROWING DATA CENTRE DEMAND
By Editor_wr On Apr 7, 2025 Johnson Controls (NYSE: JCI), the global leader for smart, safe, healthy and sustainable buildings, has expanded the availability of its industry-leading YORK® YVAM air-cooled magnetic bearing chillers to the Middle East, addressing the surging demand for efficient and sustainable cooling solutions in the region's fast-growing data centre market. As artificial intelligence (AI), cloud computing, and digital transformation continue to drive data centre expansion across the Middle East, the YVAM chiller provides a cutting-edge thermal management solution designed for hyperscale and colocation facilities. 'With the Middle East experiencing a rapid increase in data storage needs, coupled with the growing adoption of AI and cloud services, data centre operators require advanced cooling technologies that enhance efficiency while minimizing resource consumption,' said Devrim Tekeli, vice president & general manager, MEA, Johnson Controls. 'The YORK® YVAM chiller is designed to meet these challenges, offering unmatched energy savings, water conservation, and operational flexibility, making it an ideal choice for the region's evolving data centre landscape.' Advanced Cooling for a Demanding Climate The YORK® YVAM chiller is engineered to excel in the extreme temperatures of the Middle East, operating effectively in ambient conditions reaching +55°C. Its ability to deliver chilled water temperatures between +15°C and +30°C ensures seamless compatibility with various cooling technologies, including cold air aisles, direct liquid cooling, and immersion cooling. Key benefits include: 40% lower power consumption annually while maintaining optimal cooling capacity. Zero on-site water use, addressing the region's growing focus on Water Usage Effectiveness (WUE) and sustainable water conservation. Ultra-low Global Warming Potential (GWP) refrigerant, supporting sustainability goals and regulatory compliance. Johnson Controls' proprietary magnetic-bearing technology and variable-speed drives, enhancing efficiency and eliminating the need for free cooling coils. Low noise output of 65 dBA at 10 meters, significantly quieter than traditional screw chillers, making it ideal for urban environments. Lubrication-free design, reducing maintenance costs and system complexity. Quick Start technology, enabling the chiller to return to full load in as little as three minutes after a power interruption, ensuring continuous operations for critical data centre infrastructure. Flexible platform, designed for easy inspection and serviceability. Supporting the Middle East's Data Centre Growth As the region sees a surge in investments in digital infrastructure, Johnson Controls is committed to delivering innovative, efficient, and sustainable solutions tailored to the Middle East's unique operational challenges. 'The YVAM chiller's advanced design and efficiency will transform data centre thermal management in the Middle East,' added Tekeli. 'With a strong track record in North America, we are now bringing this next generation technology to the Middle East to help data centres scale efficiently and sustainably.' Johnson Controls offers a comprehensive portfolio of air-cooled and water-cooled chillers, air handling units, fire safety solutions, building automation, and digitally connected services, ensuring end-to-end support for hyperscale and colocation data centres. In line with the company's expansion strategy, Johnson Controls continues to enhance its capacity in the region to meet demand and reduce lead times, reinforcing its commitment to delivering high-quality, centralized solutions that support the Middle East's growing digital economy. Visit the Johnson Controls website to learn more about the YORK® YVAM air-cooled magnetic bearing centrifugal chiller. Johnson Controls proudly celebrates its 140th anniversary in 2025, marking a legacy of innovation and leadership in smart, safe, healthy and sustainable solutions. The company continues to redefine building performance, driving the next era for commercial buildings, transforming industries and powering its customers' missions Prev Post Alteryx Appoints Ben Canning as Chief Product Officer Next Post AVEVA appoints Sébastien Ory as EMEA VP Partners & Channels Comments are closed.